Everything you need to know about selling real estate holding companies
Do you have questions about selling a real estate holding company? About our acquisition process, timelines, tax considerations, or the confidentiality of our discussions? You’re in the right place.
At BLACKREIT, we understand that selling a real estate company is an important decision, often linked to family, professional or estate planning matters. That’s why we’ve gathered here the most frequently asked questions from our partners and sellers.
FAQ
The rental and administrative management of my real estate investment company is becoming a burden. I’m unsure if I want to sell my company and above all, I would not know how to go about it. Can I speak with a member of your team at no obligation ?
YES. We would be happy to contact you, analyze your situation and let you know whether or not we are interested in acquiring the shares in your real estate investment company. We will also take the time to explain the different steps leading up to the actual sale.
My real estate investment company owns two residential buildings, one retail space and one condominium. Would this be of interest to BLACKREIT?
YES. Generally, in this type of case, BLACKREIT would buy 100% of the shares in your company and would take care of the arbitrage.
We would probably sell the retail space and the condominium, and hold on to and manage the residential buildings for the long term.
Certain buildings owned by my real estate investment company are old, in need of an upgrade or renovation. Would this be of interest to BLACKREIT?
YES. BLACKREIT has particular expertise in maintenance, renovation and bringing properties up to standard. With an in-house technical team, in this case we would carry out the necessary work to upgrade the properties of the newly acquired company.
The buyer for my company was unable to secure credit and the transaction did not go through. How do I know that the same thing will not happen with BLACKREIT?
In the majority of cases, BLACKREIT will buy 100% of the shares in companies from our own equity. You can rest assured that the closing will happen and the payment will be made on schedule.
I would like to sell my real estate investment company because I am earning very low returns. In that light, why would BLACKREIT want to purchase my company?
Like for any business, the leverage, arbitrage and economies of scale that we are able to achieve by pooling all of the acquired companies allows us to reduce the costs for rental and technical management of the buildings , thus significantly increasing overall returns for the acquired company and therefore, the portfolio as a whole.
Apparently, if the purchaser of my real estate investment company resells the company within twelve months to a third party domiciled outside of the Eurozone, the sale of my company could be requalified and taxed. Is that true?
YES. It’s important to know the intentions of the buyer ahead of the sale in order to protect yourself from this type of situation. BLACKREIT automatically incorporates a clause prohibiting the type of operation described, thus protecting the seller.
I would like to sell my real estate investment company, but there are bank commitments with very high interest rates involved. How does BLACKREIT handle this?
Before expressing interest in the acquisition, BLACKREIT would calculate the additional costs associated with this high interest rate. We would therefore purchase the company with full knowledge of the bank commitments and conditions.
I would like to sell my real estate investment company but I have granted private guarantees to secure the company's debts. What should I do?
BLACKREIT will ensure that, by closing at the latest, the transferor will receive written confirmation from the financial institution of disassociation from all outstanding loans. If the loan needs to be repaid, the cost for the funding loss will be calculated and incorporated into the offer price for purchasing the shares.
Let’s talk about your real estate holding company
Are you considering selling your real estate holding company, or simply curious to learn more about our approach? We're here to talk, in complete confidentiality.